Financial Summary

Blue Shield of California reported a net income of $680 million in 2020, against revenues from premiums and other sources of more than $21 billion. Of the company's total revenue, $17.9 billion, or 82.4 percent, was spent on medical care, up from $18 billion, or 85 percent in 2019.

Our 2% Pledge: We are the only major health plan to voluntarily cap our income at two percent of revenue, returning the difference back to our customers and the communities we serve, with approval from our Board of Directors. This year we will return $81 million as our 2% Pledge amount, which as of 2020 is calculated using a three-year average. Since we made the pledge, the Blue Shield has returned more than $600 million to our customers and the community. 

In addition to our 2% Pledge, we invested $120 million in California communities over the last three years through the Blue Shield of California Foundation, whose mission is to build lasting and equitable solutions that make California the healthiest state and end domestic violence.

Find information about Blue Shield’s 2020 executive compensation (PDF, 12.4 MB).


Blue Shield of California Consolidated Financials

($ in millions) 2020 2019 2018
Premiums, net and other revenue $21,806 $21,086 $20,632
Less: medical expenses $17,985 $18,006 $17,250
Gross Profit
Medical expenses as a % of premiums
$3,821
82.5%
$3,080
85.4%
$3,382
83.6%
Marketing and selling $651 $649 $723
ACA taxes, premium taxes and other fees $499 $273 $547
General and administrative expense $1,948 $1,883 $1,615
Total administrative expenses $3,099 $2,804 $2,885
Pre-tax operating income $722 $276 $497
Investment income $366 $426 $119
Income before taxes $1,088 $702 $616
Income taxes $408 $129 $203
Net Income
Profit margin (net income as a % of premiums)
$680
3.1%
$573
2.7%
$413
2.0%
2% Pledge amount $81 $120 $57
Social Impact Giving Contribution $46 $45 $45